- Covered VLO (crossed 50dma)
- Bought MV (Being stopped out of a short must mean the market is strong)
- Covered ELY
- Covered ASBC
- Bought HGG
- Covered NPBC
- Bought API.to (see below)
The market continued its ascent this week. Most of my shorts were squeezed quite badly, and were stopped out. It almost every case, being stopped out was the best thing that could have happened. All experienced traders must admit when they are wrong, and know when to cut losses. Dogmatically holding on to shorts in this kind of market can be a recipe for account implosion.
All of my stopped out shorts have been replaced by longs, and some of these are doing very well, which is now helping to offset losses from squeezed shorts. But, to be clear, I am not buying stocks because I believe the stock market is going to go higher. I am only buying stocks because shorts are not working, and longs are working.
